Rebel Capitalist News Fear & Greed Index Skyrockets (Are We Headed For A Boom or Bust?)
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May 13, 2025 The podcast explores the recent stock market surge linked to a temporary U.S.-China trade deal, amidst a rising Fear & Greed Index now at 66. It discusses using this index as a contrarian tool for trading strategies, especially during market highs. With insights on portfolio adjustments favoring gold and T-bills, the hosts suggest a cautious investment approach. They also examine fluctuations of the US dollar and its global impact, while promoting an upcoming webinar aimed at enhancing financial literacy.
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CNN Fear & Greed Index Insights
- The CNN Fear and Greed Index uses objective market indicators like the 125-day moving average and VIX to gauge sentiment.
- Extreme fear signals potential buying opportunities, while extreme greed suggests caution and risk reduction.
Manage Risk at Extreme Greed
- Avoid excessive risk when the Fear and Greed Index exceeds 70, indicating extreme greed.
- Keep more cash ready and consider risk reduction strategies near the upper extreme of the index.
Temporary US-China Trade Pause
- The recent US-China 90-day tariff pause is a temporary political win, not a full trade deal.
- This pause is priced into the market, creating uncertainty about long-term trade resolutions.